Allowed

Canara Bank v. M/s Ex Para Canteen Pvt. Ltd.

DRT29 Jun 2026OA/436/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna decided an application filed by Canara Bank for recovery of dues of approximately 27 lakhs against defendants who failed to repay an overdraft facility. The bank presented documentary evidence and the defendants did not appear. The Tribunal found the claim valid and issued a recovery certificate.

What did the court decide?

Debt of Rs. 26,95,496/- with interest at 11.15% p.a. adjudicated and a recovery certificate issued under Section 19(22) of the RDB Act, 1993, directing recovery from sale of mortgaged or other movable

Canara Bank versus M/s Ex Para Canteen Pvt. Ltd. — Banking and Recovery | DRT (2026)

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DRT. PATN A

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OA 436 of 20241 Jl

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 436 of 2024

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Canara Bank, Patna South Gandhi Maidan, Main Branch, Patna, DistrictPatna

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. . . . . . .Applicant

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M/s Ex Para Canteen Pvt. Ltd. through its Directors Banti Shahi & Sarita Sahi, Office at- below Hotel Radhika Inn, Vijay Nagar, Patel Chowk, Rukunpura, Patna 800014

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Banti Shahi, Son ofMurari Shahi, Director of M/s Ex Para Canteen Pvt. Ltd., R/o village and post office- Devpura Telia Dih, P.S.- Rusulpura, District- Saran- 841212

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Sarita Shahi, Director of M/s Ex Para Canteen Pvt. Ltd., C/o Vikas Shahi, 202, Shivkunj Apartment, Gandhi Nagar, Boring Road, Patna 800001

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Defendants

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Present:

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For the Applicant Shri Gopal Swaroop Dubey, Advocate For the Defendants None

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Dated:29.06.2026

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 30.08.2024 against the defendants to recover its debts from defendants of Rs.26,95,496/- as on 30.06.2024 along with pendente-lite and future interest at the contractual rate from 01.07.2024 with costs till realization.

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The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

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Defendants, engaged in the business of FMCG items, grocery and electronics items as Mega Mart, approached the applicant bank for sanction of OCC Limit of Rs.25 Lakh, vide loan application dated 21.01.2023, which was Viv

DRT1 PATN A

OA 436 of 20241 Jl

sanctioned by the applicant bank on 21.01.2023 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents in favour of the applicant bank, details of which are given in OA

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After availing the sanctioned credit facilities, the defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 3 1.03.2024.

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Since, the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

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The total liability in the loan account is Rs.26,95,496/- as on 30.06.2024 with pendente-lite and future interest contractual rate from 01.07.2024 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 21.10.2024, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. Thereafter notice was again issued to the defendants on 01.11.2024, which was served by way of affixation upon front of the wall of the business premises, as affirmed on affidavit by Shri Avishek Kumar, Manager of the applicant bank.

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Despite the registered summons/notices and service by way ofaffixation of notice, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 1 1.04.2025 .

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also

OA 436 of2024jJl

DRT, PATNA

given evidence on affidavit by way of affidavit by Shri Avishek Kumar, Manager of the applicant bank. The details of documents are as follows:

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Sl.No	1Descriptionof Documents Photocopies	1Date of IExecution 1	1Amount I(in 1Lakh)	I Signatur 1 Executan 1	eof ts	1Ex./ IAnn. 1No.
	Loan application	21.01.2023		Defendants
	Sanctio-nletter	21.01.2023	25.00	Bank accepted defendants	and by
	a		25.00	Defendants
	AgreeR		25.00	Defendants
	e facilit		25.00	Defendants
	Letterofundertaking	21.01.2023	ZJ+UV	Defendants
	Declarations Guarantee agreements	21.01.2023	25.00	Def.no.2&3
8	e execution of documents		25.00	Defendants		8
	o			Bank		9
	e			Bank
	e			Bankadv.
	Statementofaccount			Bank
13	Authorizationletter	19.07.2024		Bank		13

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The

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Presiding Oficer Debts R9coR'9rv TribwKQ PAT&A

OA 436 of 20241 Jl

DRT, PATN A

applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 31.03.2024, whereas the present application has been filed on 30.08.2024. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

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Shri Avishek Kumar, Manager of the applicant bank . has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record gworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (1 1) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker’s Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker’s Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a certifIed copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is mw by law admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained In the ordinary course of business is not only admissible but sh§Jl be taken as the correct statement of

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\YAk Bestding aFc?:fI rib II =.J Debts Be FAI xi-L

OA 436 of 20241 Jl

DRT, PATN A

account, more so since the entries in the statement of account have not been challenged.

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On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendants have executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O.A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 30.06.2024 has been proved to be Rs.26,95,496/- only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.26,95,496/- along with pendente-lite and future interest @ 11.15% p.a. with compounded monthly rests from 30.08.2024 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is alloWed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.26,95,496/- along with pendente-lite and future interest @ 11.15% p.a. with compounded monthly rests from 30.08.2024 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not de(jucted.

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vJ@ Presiding Ofic4r DdItS RecovefY Tdbw1 PAirNA

OA 436 of 2024jJI

DRT, PATNA

Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery Of$cer will issue demand notice to the CertifIcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /Certificate holder fails to comply with directions of the Recovery OffIcer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in the website of the Tribunal.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 10.08.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 29th day of June, 2026.

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Dictated &corrected by me.

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.i* [Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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FOM NO. 9 [See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd FlooR (A. B & F Wing) Karpui Thaku Sadan1 Kendriya Karamchari Parisn (GPOA), Ashiana Digha Road, Patna-800CJ25,

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RECOVERY CERTIFICATE UNDER SECTION 19(D READ WITH $ECTION 19(B) OF THE RECOVERY OF DEBT$ & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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R(,' No. 213/2026 IN Case No: QA/436/2024

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In the Matter of: (CH- 1) CANARA BANK PATNA SOUTH GANDHI MAIDAN, MAIN BRANCH, PATNA ,BIHAR -0

Applicant(s)

Versus –-–--

(CD- 1) M/S EX PARA CANTEEN PVT. LTD Though its Directors Banti Shahi and Sarita Sahi, Office at- Below Hotel Radhika Inn, Vijay Nagar, Patel Chowk, Rukunpura, Patna ,BIHAR -800014

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(CD- 2) BANTI snAHI SON OF MUILtRI SHAHI, DIRECTOR OF M/S EX PARA CANTEEN PVT. LTD., R/0- VILLAGE AND POST OFFICE- DEVPURA TELIA DIH, P.S.RASULPURA, DISTRICT- SARAN - 841212

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Defendant(s)

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(CD- 3) SARITA SHAHI DIRECTOR OF M/S EX PARA CANTEEN PVT. LTD. C/0- VIKASH SHAHI, 202, SHIVKUNJ APARTMENT, GANDHI NAGAR, BORING ROAD, PATNA- 800001

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Recovery Certificate for Rs 2695496.00 1 Rupees Twenty Six Lakhs Ninety Five Thousands Four Hundred Ninety Six OnDa

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In terms of final order dated 29/06/2026 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2695496.00 along with cost, expenses and interest from the 30/08/2024 i.e. date of filing / with effective date of the OA/436/2024 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr.n	oCDName	H= m:Hiode	Int. Rate	Effective Date	Order Date	,Amount(Rs.)	:LTiT	Interest (ason Order Date)	AmouLt(Rs.) Remark
I	M/S EXPARA CANTEEN PVT.LTD	,Compound ;Interest :(Monthly)	11.15	:30/08/2024	:29/06/2026	:2695496.00	Jointly IAnd !Severally	Interest As 'onOrder :Date	:2695496.00
2	BANTI SHAHI		11.15	{30/08/2024	;29/06/2026	12695496.00	;And	ionOrder	;2695496.00
, J	SARITA SHAHI	Interest :Monthly)	11.15	,30/08/2024	129/06/2026	:2695496.oo

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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors

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The mongaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

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Parties are directed to appear before ASHISH KUMAR , Recovery Of}icer, DEBTS RECOVERY TRIBUNAL PATNA on 10/08/2026,

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 03/07/2026

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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_ Registrar

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D e::i;TWA:: n a

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FORM NO. 10 [See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 213/2026 IN

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Case No: OA/436/2024

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Applicant(s): CANARA BANK

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Versus

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Defendant(s): M/S EX PARA CANTEEN PVT. LTD

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	tem ofCosts	!AmountinRs
	'eeontheapplication	29000
2	lrocessFees(Inc. Publication)	io
	AdvocateFees	10
4	[C–oliiII:hlbT2R&&8iver7Vill;;hFSeim	b
	[iUi–s-&haneousCharges	[0
	TotalCosts:Rs.	i29000

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Place: PATNA

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Date: 03/07/2026

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P ]B11]: S I ]D1 hc E ]B:111b DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Canara Bank v. M/s Ex Para Canteen Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Ex Para Canteen Pvt. Ltd.

Case brief

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What did the court decide?

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